Tcs collected by party for fy 2020-2021 but not deposited

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This query is : Resolved

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A business collected TCS from a buyer for FY 2020-2021 but failed to deposit it with the government. The buyer is seeking advice on how to write off this amount in their company's accounts, especially since the supplier is now refusing to file or refund. The consensus suggests waiting for a period, reporting the issue to the relevant tax authorities, and exploring options like requesting a refund or remission from the supplier.

ARUN GUPTA

ARUN GUPTA (Querist)

18 January 2022 We purchased hoods from a party and party collected tcs from us for fy 2020-2021.The party has not deposited tcs amount to government.
How will we write off tcs amount in our books of accounts? Please explain?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

18 January 2022 Keep it in the books of accounts, report the issue to the jurisdiction ITO TDS of your seller.
Wait for the outcome for one more year.

ARUN GUPTA

ARUN GUPTA (Querist)

18 January 2022 We don't want to report as this will make our relations bad

CA Puja Sharma

CA Puja Sharma (Expert)

18 January 2022 Do not write off in FY 2021-22. Wait for the next FY, the party might deposit the TCS of FY 2020-21 at the time of IT return filing.

ARUN GUPTA

ARUN GUPTA (Querist)

18 January 2022 How can we square off this tcs standing in our books of accounts?

ARUN GUPTA

ARUN GUPTA (Querist)

18 January 2022 The party is not going to file since party position is bad. Please suggest how to write off?